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Financial Mechanism of the Convention

By:
Edward A. Reid Jr.
Posted On:
Jun 1, 2016  at  at 11:30 AM
Category
Climate Change

The United Nations Framework Convention on Climate Change (UNFCCC) established the Green Climate Fund (GCF) at COP 16 in 2010, as an operating entity of the Financial Mechanism of the Convention. The original intent was for the developed countries to provide a fund of $100 billion for use by the developing nations in climate adaptation and remediation, of which only about $10 billion has actually been pledged.

COP 21 set a new “collective quantified goal” of $100 billion per year for GCF funding, beginning in 2020. However, the Group of 77 plus China argued that this base funding level must be substantially increased if it is to meet the requirements of the Group of 77 plus China to contribute to the goals of the COP 21 Agreement, as well as meet their adaptation and remediation needs.

It is interesting that the number 1 and number 3 GHG emitters are members of this group; and, that neither of these countries has submitted an Intended Nationally Determined Contributions (INDC) document which makes any commitment to emissions reductions.

The UNFCCC COP 21 Agreement expresses some degree of urgency with regard to this funding, despite the fact that there are no demonstrated adverse impacts of anthropogenic global warming (AGW); and, significant evidence of positive climate impacts on crop production and general vegetation growth.

The Board of the Green Climate Fund has determined that the pledged funds should be allocated approximately 50% to adaptation and 50% to remediation over time; and, that at least 50% of the adaptation funds should be devoted to meeting the needs or the most vulnerable nations.

There is currently no formula which determines the contributions of individual nations to the Green Climate Fund. Currently, relatively few nations have announced commitments.